The S&P/TSX Composite got blasted during the week ending with Thursday's close, falling 5.0 per cent.
The benchmark is deeply oversold according to Relative Strength Index (RSI). The reading of 14.2 is well below the buy signal of 30 and a long, long way from the oversold, sell signal of 70.
There are 87 oversold stocks, just over a third of all benchmark companies, this week. Element Fleet Management Corp. is the most oversold stock in the index, followed by Nutrien Ltd., Altagas Ltd., Transcanada Corp., Bank of Nova Scotia and Emera Inc.
The sector composition of the TSX is a problem this week where picking a stocks for the focus chart is concerned.
The benchmark is about 50-per-cent resources and financials, and stock prices in these industries are more likely to be affected by commodity prices and bond yields than technical factors in the days ahead.
With this in mind, I'm using the benchmark itself for the focus chart again this week.
The S&P/TSX Composite is now more oversold by RSI than at any time in the past five years. I don't, however, think the current RSI buy signal will be much help in finding a profitable entry point. As I mentioned last week, the tendency for the benchmark is that it has to bottom, rise, and re-test the lows before a sustainable recovery occurs. October to December 2014 is the best example of this on the chart.
The speed of the current decline makes identifying a potential rally point more difficult. The next important level to watch is 14,950 where the index bottomed in August 2017. If the index knifes through that level on the way lower without pausing, this would imply further weakness. A pause at that level would be a hopeful sign of stability and potentially a temporary bottom (that would probably have to be re-tested afterwards).
There are only two overbought, technically vulnerable S&P/TSX Composite stocks by RSI this week – Pure Industrial REIT and Morneau Shepell Inc.
As always, investors should complete fundamental research before making any market transactions.
| | RSI | Price | 200DMA | Return 1W % | Return YTD % | PE Ratio TTM | PE Ratio Fwd |
|---|
| EFN-T | ELEMENT FLEET MANAGEMENT COR | 8.648956 | 5.45 | 9.51645 | -33.53659 | -42.63158 | #N/A N/A | 6.829573935 |
|---|
| TSX-I | S&P/TSX COMPOSITE INDEX | 14.21246 | 15065.61 | 15612.63 | -5.012097 | -6.87007 | 17.91572123 | 14.87110691 |
|---|
| NTR-T | NUTRIEN LTD | 15.27953 | 56.84 | #N/A N/A | -10.13439 | #N/A N/A | #N/A N/A | 20.57498699 |
|---|
| ALA-T | ALTAGAS LTD | 15.39407 | 25.97 | 29.08005 | -5.597967 | -8.686443 | 26.56660557 | 31.70940171 |
|---|
| TRP-T | TRANSCANADA CORP | 15.91181 | 53.07 | 62.0957 | -4.412825 | -13.25597 | 17.34997509 | 16.42525534 |
|---|
| BNS-T | BANK OF NOVA SCOTIA | 15.92538 | 76.22 | 79.4898 | -5.609906 | -6.040432 | 11.81248696 | 11.04477612 |
|---|
| EMA-T | EMERA INC | 15.93825 | 42.88 | 47.43835 | -4.647541 | -7.593727 | 19.00937616 | 15.35816619 |
|---|
| CNQ-T | CANADIAN NATURAL RESOURCES | 16.56601 | 37.58 | 41.4862 | -11.55566 | -16.34016 | 24.50202271 | 17.86121673 |
|---|
| ENF-T | ENBRIDGE INCOME FUND HOLDING | 17.29308 | 26.9 | 31.05065 | -3.272206 | -9.154541 | 12.74881499 | 11.46144014 |
|---|
| ECN-T | ECN CAPITAL CORP | 17.73081 | 3.41 | 3.8792 | -8.086251 | -13.23155 | 21.52438116 | 19.26553672 |
|---|
| RCI/B-T | ROGERS COMMUNICATIONS INC-B | 18.32546 | 56.75 | 63.9676 | -4.733926 | -11.39735 | 16.45351035 | 14.73260644 |
|---|
| IVN-T | IVANHOE MINES LTD-CL A | 19.17279 | 2.76 | 4.3209 | -19.06158 | -34.90566 | #N/A N/A | #N/A N/A |
|---|
| CM-T | CAN IMPERIAL BK OF COMMERCE | 19.27689 | 113.67 | 111.7674 | -6.088898 | -7.238454 | 10.38539417 | 10.02027504 |
|---|
| PSK-T | PRAIRIESKY ROYALTY LTD | 19.95168 | 28.82 | 30.77745 | -4.537928 | -9.925106 | 70.22451302 | 98.36177474 |
|---|
| IPL-T | INTER PIPELINE LTD | 20.04979 | 22.18 | 25.52195 | -6.64983 | -14.32554 | 15.92660857 | 14.14540816 |
|---|
| FTS-T | FORTIS INC | 20.61349 | 40.6 | 45.43085 | -4.918036 | -11.94969 | 16.36836667 | 15.37878788 |
|---|
| BMO-T | BANK OF MONTREAL | 20.74842 | 95.51 | 96.45885 | -5.622528 | -4.178759 | 11.83897142 | 11.17991338 |
|---|
| FCR-T | FIRST CAPITAL REALTY INC | 21.16618 | 19.1 | 20.32145 | -6.738279 | -7.818531 | 28.87630417 | #N/A N/A |
|---|
| SJR.B-T | SHAW COMMUNICATIONS INC-B | 21.31518 | 25.69 | 28.30495 | -3.2756 | -10.13163 | 19.01420739 | #N/A N/A |
|---|
| CR-T | CREW ENERGY INC | 21.37258 | 1.9 | 3.79225 | -15.17857 | -39.68254 | #N/A N/A | #N/A N/A |
|---|
| RNW-T | TRANSALTA RENEWABLES INC | 21.59762 | 11.93 | 14.22795 | -2.452982 | -10.33811 | 31.57061923 | 11.27599244 |
|---|
| RRX-T | RAGING RIVER EXPLORATION INC | 21.89672 | 6.35 | 7.6615 | -14.65054 | -20.625 | 24.76347915 | 18.29971182 |
|---|
| NPI-T | NORTHLAND POWER INC | 21.96837 | 21.6 | 23.4415 | -3.225805 | -7.091044 | 30.29946019 | 15.76642336 |
|---|
| FNV-T | FRANCO-NEVADA CORP | 21.98712 | 88.22 | 97.96585 | -5.647058 | -12.18395 | 60.91833069 | 64.63453768 |
|---|
| IFC-T | INTACT FINANCIAL CORP | 22.00599 | 97.95 | 100.2436 | -4.893682 | -6.705403 | 15.90896159 | 14.4086496 |
|---|
| FRU-T | FREEHOLD ROYALTIES LTD | 22.04678 | 12.66 | 14.0737 | -5.16854 | -9.560987 | 34.77849955 | 97.38461538 |
|---|
| CHE.UN-T | CHEMTRADE LOGISTICS INCOM FD | 22.37824 | 16.2 | 18.50975 | -6.628238 | -16.0141 | 28.52901376 | 21.23197903 |
|---|
| SAP-T | SAPUTO INC | 22.38499 | 40.06 | 43.2672 | -2.884845 | -11.33245 | 16.66927485 | 18.85176471 |
|---|
| MAXR-T | MAXAR TECHNOLOGIES LTD | 22.41873 | 72.58 | 72.19685 | -6.033141 | -10.30647 | 21.70566893 | 11.75574992 |
|---|
| WN-T | WESTON (GEORGE) LTD | 22.56783 | 102.39 | 112.4811 | -3.587571 | -6.201906 | 20.25889186 | 14.70275704 |
|---|
| ECA-T | ENCANA CORP | 22.71226 | 13.3 | 13.93615 | -11.56915 | -20.69171 | 23.01425278 | 17.2154039 |
|---|
| PPL-T | PEMBINA PIPELINE CORP | 22.75537 | 39.41 | 43.05025 | -4.967447 | -13.04199 | 31.27053084 | 17.88112523 |
|---|
| POW-T | POWER CORP OF CANADA | 22.79289 | 30.1 | 31.1703 | -3.401796 | -7.012665 | 8.818171756 | 9.38571874 |
|---|
| CVE-T | CENOVUS ENERGY INC | 22.8692 | 9.85 | 11.58395 | -14.93955 | -14.1986 | 8.500466345 | 20.60669456 |
|---|
| GWO-T | GREAT-WEST LIFECO INC | 23.618 | 33.85 | 35.09105 | -2.505765 | -3.561258 | 13.11797829 | 11.09836066 |
|---|
| KEY-T | KEYERA CORP | 23.75336 | 32.17 | 37.881 | -4.963078 | -8.824552 | 21.71141443 | 21.41810919 |
|---|
| REF.UN-T | CAN REAL ESTATE INVEST TRUST | 23.7543 | 42.75 | 46.42795 | -3.585927 | -7.342879 | 11.64734298 | #N/A N/A |
|---|
| WTE-T | WESTSHORE TERMINALS INVESTME | 23.97427 | 24.08 | 23.7901 | -4.406511 | -8.406239 | 15.14795039 | 14.24852071 |
|---|
| SU-T | SUNCOR ENERGY INC | 24.0034 | 41.44 | 42.40385 | -7.126852 | -10.20585 | 17.13447363 | 17.84668389 |
|---|
| DSG-T | DESCARTES SYSTEMS GRP/THE | 24.10318 | 31.74 | 34.3226 | -9.262436 | -11.19194 | 66.74514342 | 32.32924144 |
|---|
| RY-T | ROYAL BANK OF CANADA | 24.22213 | 99.24 | 97.3724 | -5.187735 | -2.492076 | 13.38271947 | 12.2397632 |
|---|
| NWC-T | NORTH WEST CO INC/THE | 24.60325 | 27.39 | 31.01275 | -4.597703 | -8.912539 | 20.16514911 | 15.09922822 |
|---|
| IGM-T | IGM FINANCIAL INC | 24.69154 | 41.25 | 42.2829 | -6.25 | -6.568516 | 13.50009524 | 12.15022091 |
|---|
| ENB-T | ENBRIDGE INC | 24.70313 | 43.36 | 50.4289 | -1.432142 | -11.79821 | 25.03199755 | 19.57562077 |
|---|
| SNC-T | SNC-LAVALIN GROUP INC | 24.74248 | 52.39 | 55.21365 | -2.584605 | -8.168275 | 18.63934535 | 19.17642753 |
|---|
| CNR-T | CANADIAN NATL RAILWAY CO | 24.7635 | 93.91 | 102.0907 | -4.055983 | -9.397006 | 18.7989461 | 17.56311951 |
|---|
| SPE-T | SPARTAN ENERGY CORP | 24.80416 | 5.55 | 6.424 | -12.59842 | -22.80946 | #N/A N/A | 52.85714286 |
|---|
| VII-T | SEVEN GENERATIONS ENERGY - A | 24.81725 | 15 | 20.0318 | -13.24465 | -15.63555 | 17.28560662 | 11.66407465 |
|---|
| L-T | LOBLAW COMPANIES LTD | 24.99809 | 63.85 | 69.95295 | -2.489312 | -6.405748 | 18.90981115 | 13.98073133 |
|---|
| TCW-T | TRICAN WELL SERVICE LTD | 25.17976 | 3.12 | 4.01925 | -15.90297 | -23.52942 | 12.8326405 | 10.90909091 |
|---|
| POU-T | PARAMOUNT RESOURCES LTD -A | 25.24798 | 15.38 | 20.44735 | -14.17411 | -20.8033 | 9.504023523 | #N/A N/A |
|---|
| BAM.A-T | BROOKFIELD ASSET MANAGE-CL A | 25.45221 | 47.99 | 51.52268 | -6.269528 | -12.29897 | 34.10965635 | #N/A N/A |
|---|
| PEY-T | PEYTO EXPLORATION & DEV CORP | 25.88299 | 10.28 | 19.5338 | -7.63702 | -31.2509 | 10.1836522 | 10.94781683 |
|---|
| VET-T | VERMILION ENERGY INC | 26.23238 | 41.83 | 43.91345 | -11.07568 | -8.006428 | 89.43251476 | 48.86682243 |
|---|
| NA-T | NATIONAL BANK OF CANADA | 26.47472 | 60.91 | 58.7045 | -4.484868 | -2.885842 | 11.1710921 | 10.51804524 |
|---|
| AQN-T | ALGONQUIN POWER & UTILITIES | 26.72433 | 12.75 | 13.55745 | -2.745996 | -9.317212 | 20.96987739 | 14.92974239 |
|---|
| TRQ-T | TURQUOISE HILL RESOURCES LTD | 26.85889 | 3.51 | 3.851 | -5.645162 | -18.18182 | 27.05406294 | 89.84035772 |
|---|
| GEI-T | GIBSON ENERGY INC | 26.92255 | 16.54 | 17.59335 | -4.942523 | -9.020897 | #N/A N/A | 71.6017316 |
|---|
| CU-T | CANADIAN UTILITIES LTD-A | 26.95829 | 34.4 | 39.0221 | -3.88284 | -7.017375 | 15.2929269 | 14.71972614 |
|---|
| ARE-T | AECON GROUP INC | 26.97209 | 19.49 | 17.37635 | -2.256772 | -2.256772 | 30.9912588 | 25.5104712 |
|---|
| ECI-T | ENERCARE INC | 27.03941 | 18.66 | 20.1853 | -5.852675 | -8.640907 | 31.26796081 | 24.55263158 |
|---|
| BTE-T | BAYTEX ENERGY CORP | 27.15005 | 3.19 | 3.65755 | -14.70588 | -15.38461 | #N/A N/A | #N/A N/A |
|---|
| TOU-T | TOURMALINE OIL CORP | 27.24826 | 18.38 | 24.6369 | -7.124815 | -19.31519 | 19.04653257 | 18.69786368 |
|---|
| WCN-T | WASTE CONNECTIONS INC | 27.33181 | 82.8 | 85.84793 | -5.791327 | -7.13324 | 36.77013861 | 28.30617884 |
|---|
| H-T | HYDRO ONE LTD | 27.39767 | 20.74 | 22.7353 | -5.469463 | -7.410715 | 19.56603752 | 16.40822785 |
|---|
| CEU-T | CES ENERGY SOLUTIONS CORP | 27.50098 | 5.31 | 6.15855 | -10.45531 | -18.64951 | 55.4216107 | 23.6 |
|---|
| FR-T | FIRST MAJESTIC SILVER CORP | 27.54177 | 6.85 | 9.32295 | -7.681942 | -19.2217 | 130.7630912 | 55.46136392 |
|---|
| UNS-T | UNI-SELECT INC | 27.5847 | 25.14 | 28.43278 | -7.67536 | -11.51003 | 15.6610404 | 13.23664955 |
|---|
| PSI-T | PASON SYSTEMS INC | 27.61499 | 16.49 | 18.5636 | -8.439757 | -9.345796 | 59.34216126 | 31.40952381 |
|---|
| WCP-T | WHITECAP RESOURCES INC | 27.74239 | 8.2 | 9.21625 | -10.08772 | -8.121707 | 18.38037471 | 26.28205128 |
|---|
| TOG-T | TORC OIL & GAS LTD | 27.7791 | 6.17 | 6.08065 | -9.663249 | -17.93084 | #N/A N/A | 411.3333333 |
|---|
| KDX-T | KLONDEX MINES LTD | 27.78237 | 2.12 | 3.8772 | -24.28572 | -34.96933 | #N/A N/A | 13.03983814 |
|---|
| AAV-T | ADVANTAGE OIL & GAS LTD | 27.81452 | 3.73 | 7.207975 | -6.281406 | -30.92593 | 14.81681577 | 19.03061224 |
|---|
| IMO-T | IMPERIAL OIL LTD | 27.90176 | 35.11 | 38.55565 | -9.486979 | -10.50216 | 100.4408429 | 17.28705071 |
|---|
| ITP-T | INTERTAPE POLYMER GROUP INC | 27.92653 | 20.15 | 21.6225 | -4.32099 | -6.23546 | 15.88175251 | 14.58782505 |
|---|
| PWF-T | POWER FINANCIAL CORP | 27.99183 | 33.02 | 34.2791 | -2.394323 | -4.400693 | 11.49390094 | 9.792408066 |
|---|
| SES-T | SECURE ENERGY SERVICES INC | 28.11973 | 7.88 | 8.53345 | -11.85682 | -9.818248 | #N/A N/A | 103.6842105 |
|---|
| HR.UN-T | H&R REAL ESTATE INV-REIT UTS | 28.32315 | 20.29 | 21.65775 | -2.732498 | -4.492617 | 10.90041561 | #N/A N/A |
|---|
| CCA-T | COGECO COMMUNICATIONS INC | 28.35722 | 74.52 | 85.4519 | -2.179054 | -13.30578 | 12.0631357 | 12.21439108 |
|---|
| BEI.UN-T | BOARDWALK REAL ESTATE INVEST | 28.41959 | 40.76 | 43.56655 | -8.280832 | -5.228685 | 52.0609792 | #N/A N/A |
|---|
| TD-T | TORONTO-DOMINION BANK | 28.5692 | 71.07 | 68.6977 | -4.693577 | -2.719907 | 13.07525024 | 11.93651327 |
|---|
| MFC-T | MANULIFE FINANCIAL CORP | 29.04564 | 25.09 | 25.341 | -3.089996 | -4.309687 | 11.03215513 | 9.661147478 |
|---|
| BPY.UN-T | BROOKFIELD PROPERTY PARTNERS | 29.13557 | 25.53 | 29.1967 | -3.841805 | -8.330338 | #N/A N/A | #N/A N/A |
|---|
| T-T | TELUS CORP | 29.15976 | 45 | 45.8898 | -1.098901 | -5.50189 | 16.93888075 | 16.1637931 |
|---|
| ARX-T | ARC RESOURCES LTD | 29.32333 | 12.43 | 16.2285 | -7.720859 | -15.41693 | 16.57751127 | 23.72137405 |
|---|
| CPX-T | CAPITAL POWER CORP | 29.42754 | 22.58 | 24.7019 | -2.630445 | -7.799102 | 19.37068432 | 16.5907421 |
|---|
| WPM-T | WHEATON PRECIOUS METALS CORP | 29.44676 | 25.02 | 26.12085 | -5.76271 | -9.967612 | 31.74409931 | 32.86823751 |
|---|
| NVU.UN-T | NORTHVIEW APARTMENT REAL EST | 29.6032 | 23.38 | 22.909 | -5.497174 | -5.921025 | 13.11813853 | #N/A N/A |
|---|
| PVG-T | PRETIUM RESOURCES INC | 29.77821 | 8.69 | 12.3826 | 2.718671 | -39.40028 | #N/A N/A | 14.82835154 |
|---|
| | | | | | | | |
|---|
| | RSI | Price | 200DMA | Return 1W % | Return YTD % | PE Ratio TTM | PE Ratio Fwd |
|---|
| AAR.UN-T | PURE INDUSTRIAL REAL ESTATE | 73.40259 | 8.04 | 6.81145 | -0.6180474 | 19.14185 | 21.27625782 | #N/A N/A |
|---|
| MSI-T | MORNEAU SHEPELL INC | 73.29254 | 23.21 | 21.2555 | 1.309468 | 4.379268 | 27.43025327 | 25.2832244 |
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Source: Bloomberg/Scott Barlow